Gold prices slightly up, still close to 1-week low

Gold prices saw a marginal increase today, June 7, but still lingered close to a one-week trough, as investors await the release of US monthly inflation data this week, which might impact the Federal Reserve's monetary policy stance and demand for the precious metal.

Gold futures contracts for August delivery rose 0.28% to $1,849.10 an ounce at 11:42 am Makkah time. Spot prices also surged 0.30% to $1,847.67 per ounce, after hitting $1,836.10 earlier in the session — the lowest level since June 1.

Elsewhere, silver futures for July delivery fell 0.42% to $22.01 an ounce. The spot price of palladium, meanwhile, rose 0.74% to $2,017.49, while the spot price of platinum slipped 0.73% to $1,010.04.

The main dollar index, which measures the performance of the US currency against a basket of six currencies, increased by 0.22% to 102.64 points.

Expectations are growing for the Federal Reserve to raise interest rates by 50 basis points during the June and July meetings, with central bank members focusing on monitoring the impact of rate hikes on the US economy and its growth.

Higher interest rates affect the attractiveness of the precious metal for increasing the opportunity cost of holding bullion. However, with concerns persisting about the consequences of rising interest rates and their impact on economic growth, gold investors remain alert and cautious.